“The NUT has played a leading role in the negotiations leading to the improvements in the scheme,” said David Evans, secretary NUT Cymru.

“The Teachers’ Pension Scheme will continue to be a final salary scheme which provides a guaranteed index-linked pension and a tax-free lump sum. This compares favourably to the private sector where final salary schemes are rapidly disappearing. Two-thirds of such schemes in the UK are closed to new entrants. Some companies have gone so far as to close their final salary scheme to existing members. Final salary schemes have been replaced with money purchase schemes which do not provide guaranteed benefits and, in addition, private sector employees have often seen increases in their contributions.

“In addition, unmarried partners will be eligible to receive dependents’ pensions. All service from 1 January 2007 will count for this benefit and past service can be bought in.

“From today, too, the death in service lump sum goes up from twice to three times salary.

“Currently, the salary used to determine pensions is the best year’s average salary in the three years prior to retirement. Now there is a new choice – the best three years’ inflation-proofed average salary within the last ten years of service.

“From 1 January 2007, all new contracts for part-time and supply teachers will automatically be pensionable. NUT Cymru fully expects employers to contact supply and part-time staff to advise them of their new entitlement.

“The agreement moves the TPS away from the current ‘cliff-edge’ system to a whereby access to Scheme benefits prior to age 60 (other than on grounds of ill health or Premature Retirement Compensation) is only possible if the member retires and takes all of their pension benefits at the same time. Teachers currently taking early retirement under the Actuarially Reduced Benefits option have their entire pension benefits reduced. The lump sum is currently reduced by approximately three per cent and annual pension by five per cent for each year before the age of 60 at which the benefits are drawn.

“The agreement introduces a phased and flexible system that will enable members to continue working as a teacher and accrue additional pension within the TPS while drawing down up to 75 per cent of their accrued pension benefits. That portion which is taken early is still subject to actuarial reduction, but the remaining benefits when taken at 60, or later, are not reduced.

“This option will be available from the age of 55 subject to the teacher reducing their pensionable salary by 25 per cent or more.

“Finally, teachers currently in service and within the Teachers’ pensions scheme have all their current pension entitlements and a normal pension age of 60 protected. They will therefore continue to be able to retire at age 60 with no reduction in their pension benefits.

“New entrants to teaching from 1 January 2007 will have a normal pension age of 65. Their pension accrual rate, however, is improved to 1/60th with the option to take 25 per cent of their pension fund as a tax-free lump sum. This will offset the effects of the higher normal pension age.

“There is much more in the agreement. Members wishing for full details should go the NUT website on www.teachers.org.uk or get in touch with the NUT Cymru office.”